Oregon hospitals are pushing for a law change. This change could raise medical debt for patients. House Bill 4040 is the key legislation. It seeks to increase the threshold for charity care screening. Currently, hospitals must screen patients owing over $500. The proposed bill raises this to $1,500 for a single visit. Hospitals cite administrative burdens. They also point to financial challenges. Patient advocates strongly oppose this measure. They fear it will increase medical debt for many. This news highlights a critical debate in Oregon.
Oregon has a history of protecting patients. Laws were passed in 2019 and 2023. These aimed to curb medical debt for low-income individuals. They required hospitals to screen patients more rigorously. The most recent protections began in July 2024. They mandated screening for uninsured patients. They also covered Medicaid enrollees. This included those owing more than $500 after insurance. Hospitals claim these rules create too much work. They struggle with unreliable screening software. They also face shaky finances. The Hospital Association of Oregon supports the bill. Lobbyist Sean Kolmer stated it allows focus on larger bills. He noted the administrative burden. He also mentioned pressure on the healthcare system. Hospitals brace for federal spending cuts. These cuts could impact Oregon’s health programs. Some lawmakers support the bill. They feel it helps struggling rural hospitals. It makes charity care more manageable for them.
Patient advocates strongly disagree. Eli Rushbanks of the group Dollar For calls it a step back. He believes it makes existing policies less effective. He fears hospitals will pursue low-income patients for money they cannot pay. Data shows current rules are working. Hospitals have seen less bad debt since July 2024. Rushbanks noted urban hospitals’ bad debt decreased significantly. Charity care spending by these hospitals also rose. A coalition of groups opposes HB 4040. This includes AARP Oregon and the Oregon Health Equity Alliance. They argue patients need easier access to free or discounted care. They say current barriers must be lowered, not raised. Jane Leo of the American Cancer Society noted patient financial burdens. Adam Zarrin of Blood Cancer United stressed aid for chronically ill patients. They want patients to have a clear path to help.
The proposed change could greatly affect patients. A patient with a $1,200 copay might not get automatic screening. They would have to apply for assistance themselves. This leaves them vulnerable. Patients with multiple bills could also be impacted. A $2,500 bill from several visits might not trigger screening. This could lead to debt. More than half of Oregonians with medical debt owe less than $2,000. Nearly a third of Oregonians have faced medical debt recently. Hospitals account for a large part of this debt. Around 41% of medical debt originates from hospitals. This Oregon news shows a clear divide.
Data suggests current rules are effective. Urban hospitals reported a large drop in bad debt. This occurred after the expanded screening criteria took effect. They also increased their charity care spending. Rural hospitals, however, show a different financial picture. Their bad debt has increased. These figures reflect the varied financial health of Oregon hospitals. They also highlight the need for careful policy considerations.
House Bill 4040 is part of broader consumer protection efforts. Oregon has enacted laws against medical debt reporting. They also address hidden online fees and car sales. These measures aim to shield Oregon families. The debate over HB 4040 pits hospital finances against patient welfare. Lawmakers face a tough decision. They must balance hospital needs with ensuring care access. The outcome will impact many Oregon residents. This news continues the ongoing discussion on healthcare affordability. It shapes the future of medical debt in the state. The legislature’s decision will have lasting effects.
